A significant shift in institutional investment has emerged with the Bank of Nova Scotia substantially reducing its stake in Cardinal Health, Inc., a move that highlights dynamic changes within the pharmaceutical and healthcare services sectors. This divestment, meticulously documented in their latest Form 13F filing with the Securities and Exchange Commission (SEC), signals a re-evaluation of portfolio allocations and could influence investor sentiment towards Cardinal Health stock.
Specifically, the Canadian banking giant offloaded a substantial 216,062 shares, leading to a remarkable 39.6% reduction in its holdings during the first quarter. Post-transaction, Bank of Nova Scotia retained 329,251 shares of Cardinal Health, representing approximately 0.14% of the company’s total stock, valued at an impressive $45,361,000 as of their most recent SEC submission.
Beyond Bank of Nova Scotia, numerous other institutional investors have also recalibrated their positions in Cardinal Health. Notable activity includes Schroder Investment Management Group boosting its holdings by 31.6% in the fourth quarter, acquiring an additional 16,845 shares. Simultaneously, Wellington Management Group LLP dramatically expanded its stake by 687.0%, purchasing 117,803 more shares.
Further illustrating this trend, Summit Financial LLC established a new position valued at $241,000, while World Investment Advisors incrementally grew its ownership by 14.0%. Landscape Capital Management L.L.C. also made a significant increase, raising its holdings by 446.7% with the addition of 10,619 shares. Collectively, hedge funds and other institutional investors now command a substantial 87.17% of Cardinal Health’s stock.
Analyst sentiment surrounding Cardinal Health shares remains largely positive, though some adjustments have occurred. While one firm downgraded its rating from ‘strong-buy’ to ‘buy’, others, including UBS Group, Wells Fargo & Company, Evercore ISI, and Bank of America, have either reiterated ‘buy’ or ‘outperform’ ratings, or raised their price targets, signaling continued confidence in the company’s future performance.
The stock itself has shown resilience, opening at $155.97 on Friday, with its 50-day simple moving average at $159.74 and its 200-day simple moving average at $142.83. Cardinal Health, Inc. maintains a robust market capitalization of $37.23 billion, underscored by a price-to-earnings ratio of 24.33 and a price-to-earnings-growth ratio of 1.55, reflecting its valuation and growth prospects.
In its latest quarterly earnings report posted on May 1st, Cardinal Health surpassed analyst expectations, reporting $2.35 earnings per share, outperforming the consensus estimate of $2.15. Despite revenue of $54.88 billion falling slightly short of estimates, the company’s net margin stood at 0.70%, with analysts projecting an impressive 7.95 EPS for the current fiscal year.
Investors also received positive news regarding dividends. The firm recently declared a quarterly dividend of $0.5107 per share, paid on July 15th, an increase from the previous quarter. This annualized dividend of $2.04 translates to a yield of 1.3% and a payout ratio of 31.83%, reinforcing its commitment to shareholder returns.
As a global healthcare services and products company, Cardinal Health Inc. extends its reach across the United States, Canada, Europe, and Asia, providing tailored solutions to a diverse clientele including hospitals, pharmacies, surgical centers, and clinical laboratories. Its broad operational scope underscores its critical role in the international healthcare supply chain.
